Kaynes Semicon, UST ink JV for ₹3,330-cr OSAT facility in Gujarat

UST, a global technology transformation company, has made a strategic investment in Kaynes Semicon, the semiconductor subsidiary of Kaynes Technology India Ltd, in a move that underscores India’s ambitions to emerge as a global semiconductor hub.

The collaboration will see the establishment of a ₹3,300-crore Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The plant is expected to play a critical role in advancing India’s semiconductor ecosystem, which has traditionally depended on imports for chip packaging and testing.

“OSAT remains relatively new in India, but is central to building a robust semiconductor supply chain. By combining Kaynes’ deep expertise in manufacturing with UST’s global presence and R&D capabilities, we aim to accelerate India’s journey towards becoming a competitive player in the global semiconductor industry,” said Raghu Panicker, Chief Executive Officer, Kaynes Semicon.

UST brings to the table its global semiconductor client base, AI-driven process improvements, and digital engineering expertise. These capabilities, company executives said, will help enhance scale, ensure reliability, and reduce operational costs for customers looking to leverage India as a semiconductor assembly and testing hub.

“This ambitious partnership between UST and Kaynes Semicon will help shape the future of semiconductor manufacturing in India. We are proud to participate in the ‘Make in India’ initiative,” said Krishna Sudheendra, Chief Executive Officer, UST.

The investment comes at a time when India is stepping up efforts to attract global and domestic players to build a semiconductor ecosystem. Sanand, which is already home to several electronics manufacturing units, is emerging as a focal point of this push, supported by government incentives and policy support.

“Together with UST, we are creating a platform that will set benchmarks for semiconductor assembly, testing, and innovation not just for India, but for the global market,” said Ramesh Kannan, Promoter and Executive Vice Chairman, Kaynes Technology India Ltd.

Kaynes Semicon’s proposed OSAT facility is expected to serve sectors including electric vehicles (EVs), renewable energy, industrial electronics, and consumer technology—areas where India is positioning itself as a global growth engine.

Founded in 2008, Kaynes Technology is a listed electronics manufacturing services (EMS) provider with capabilities spanning design-led manufacturing, IoT solutions, and integrated electronics systems. Its semiconductor subsidiary, Kaynes Semicon, is seen as a key pillar of the company’s strategy to align with India’s semiconductor mission.

The companies believe that the partnership could become a test case for India’s ability to create a globally competitive OSAT ecosystem, a segment that has so far been dominated by Taiwan, South Korea, and China.